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accounting problems with all solutions

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solution


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Question;1. On Jan 1, 2011 XYZ Co purchased 12,000 shares of ABC Co for $15 a share. ABC has 100,000 shares outstanding. ABC reported net income of $60,000 and paid dividends of $5,000. On Dec 31, 2011 ABC had a market value of $17.50 a share. XYZ accounts for this investment as available for sale.Make the appropriate journal entries for 2011.A) PurchaseB) Receipt of dividendsC) Year end adjustments2. On Jan 1, 2011 XYZ purchased 11,000 shares of ABC Co for $20 a share. ABC had 50,000 shares outstanding. XYZ now accounts for its investment in ABC using the equity method. ABC reported net income of $120,000 and paid dividends of 30,000.Make all of the necessary journal entries for 2011.a) Initial purchaseb) Receipt of dividendsc) Reporting net income3.Cost FairValue12/31/09 2010Purchases 2010Sales FairValue12/31/10Available-for-sale equity securities Security Stan 400,000 380,000 500,000Security Lloyd 100,000 95,000 102,000How much unrealized gain or loss should be reported on the balance sheet as of December 31, 2010?4. Jack Company leased an asset to Jill Company on January 1, 2011. Jill Company is required to make $15,000 payments on January 1 of each year for six years, beginning January 1, 2011. The useful life of the asset is also estimated to be six years. Included in the lease payment are executor costs of $1000 to be paid annually by Jill Company. If Jack Company determined the interest payment to provide it a 10 percent, return, Jack Company would make the following entry on January 1, 2011:FMV of leased equipment:5. Jack Company leased an asset to Jill Company on January 1, 2011. Jill Company is required to make $15,000 payments on Dec 31 of each year for six years, beginning Dec 31, 2011. The useful life of the asset is also estimated to be six years. Jack Company would make the following entry for the receipt of cash on Dec 31, 2011:6. Jack Company leased an asset to Jill Company on January 1, 2011. Jill Company is required to make $15,000 payments on January 1 of each year for six years, beginning January 1, 2011. The useful life of the asset is also estimated to be six years. If Jack Company determined the interest payment to provide it a 10 percent return with no residual value, Jack Company would recognize interest income for 2011 ofinterest income => 15,000*(1/1.1^1 +1/1.1^2 +1/1.1^3+1/1.1^4+1/1.1^5+1/1.1^6)=15,000*(4.3553)=$ 65,328.9165,328.91????? IS IT OK?7. On January 1, 2008, Fred leased equipment to Ned for $70,000 a year for 6 years, with the first payment being made on January 1, 2009. The equipment cost Fred $300,000 to make. If Fred requires an 8 percent return on this lease, how much isa) Cost of goods sold300,000b) Sales revenue (PV ? 323610) 323,610c) Lease receivable 323,610d) Interest earned in 2009: 323610*0.08 = 25888.825888.8 Is my answer OK?????PLEASE HELP WITH THIS PART, TOOa) What journal entry does Ned make on his books on January 1, 2008 in reference to the lease?b) What adjusting entry does Ned make in reference to this lease?c) How much is Ned?s lease obligation on Dec 31, 2010?

 

Paper#42192 | Written in 18-Jul-2015

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